UK unemployment rate falls to 4.9% despite Covid restrictions
April 20, 2021, 10:12 am

UK unemployment rate falls to 4.9% despite Covid restrictions

The unemployment rate fell to 4.9% in the three months to February, down slightly from 5% in the three months to January.

Separate figures show 4.7m jobs were furloughed at the end of February UK

UK unemployment edged down in February as the jobs market showed further signs of improvement before the easing of Covid restrictions.

The Office for National Statistics said the unemployment rate fell to 4.9% in the three months to February, down slightly from 5% in the three months to January, the first quarterly decrease since the last quarter of 2019.

The improvement reflects more stable conditions after the fastest growth in redundancies on record.

Early indicators for March and the first weeks of April pointed to rising numbers of job adverts placed online as employers in the hospitality sector started to hire workers in anticipation of lockdown easing on 12 April in England and Wales.

However, the picture of strength emerging in the jobs market comes with as many as 4.7m jobs furloughed at the end of February according to separate figures from HMRC, as the multibillion-pound emergency wage scheme prevents a higher rate of unemployment while the economy remains under pressure.

At a rate of 4.9%, the official figures show about 1.7 million people were unemployed in the three months to February. Rishi Sunak, the chancellor, said protecting jobs and the economy was his main focus during the pandemic. UK

“As we progress on our roadmap to recovery I will continue to put people at the heart of the government’s response through our plan for jobs – supporting and creating jobs across the country,” he said.

Despite the decline in the headline jobless rate, employment – which measures the number of people in work – fell slightly by 73,000 in the three months to the end of February, in a sign that the jobs market is stabilising but not yet managing to create significantly higher numbers of opportunities.

Early indicators from HMRC showed a small decrease in the number of employees on company payrolls in March, of about 56,000, in the first decline since November 2020. In the past year the number of workers on company payrolls has plunged by 813,000.

Employment among 18- to 24-year-olds continued to fall, dropping by 5.1 percentage points on the quarter, while there was also a further rise in young people moving into economic inactivity, meaning they stopped looking for work. Payroll data shows the number of young workers has fallen by almost 500,000 since January 2020, accounting for three-fifths of all employee jobs lost.

Frances O’Grady, the general secretary of the TUC, said urgent action was necessary from the government to support the jobs recovery as Covid-19 restrictions were eased, including a reboot of the £2bn kickstart jobs scheme, which provides job placements for under-25s.

“Young workers are bearing the brunt of this pandemic. Many of them working in badly hit industries like retail, hospitality and the arts have lost their jobs and are at risk of long-term unemployment,” she said. UK

Analysts said the unemployment rate remained on course to peak later this year after the furlough scheme ends. Suren Thiru, the head of economics at the British Chambers of Commerce, said there were signs that longer-term unemployment caused by Covid-19 would persist, particularly for young people.

This “may mean that the road back to pre-pandemic levels lags behind the wider economic recovery”, he said.

“Further action will be needed to support the labour market when the furlough scheme ends, including supporting businesses to recruit and retain staff through a temporary cut in employer national insurance contributions.” UK

source: Richard Partington

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.